Steelmaker ArcelorMittal and coal producer Peabody Energy announced Thursday that they have opened the takeover offer to shareholders of Australia-based Macarthur Coal, urging all to accept the offer to receive a "substantial" premium for their investment.
Under the offer, Macarthur shareholders will be offered A$15.50 (US$16.28) cash per share, valuing the equity in Macarthur at approximately A$4.7 billion (US$4.94 billion). Macarthur shareholders will also be entitled to retain any final dividend declared by Macarthur in respect of the financial year ended June 30, 2011, up to an amount of A$0.16 (US$0.17) per share, without reducing the offer price, which in turn represents a total value of A$15.66 (US$16.45) cash per share.
In a press release, Peabody and ArcelorMittal noted that the total value to be received by Macarthur shareholders of up to A$15.66 per share represents a substantial premium of 41 percent to A$11.08 (US$11.64) per share, the closing price on July 11, the day Peabody and ArcelorMittal's approach was disclosed to the market.
The offer is scheduled to close on September 20, 2011 unless extended.